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LNG imports to double domestic gas supply by 2009
Monday, 10 January 2005, 20:30 IST
NEW DELHI: India's domestic gas supplies would almost double by 2009 when it starts receiving 7.5 million tonnes of liquefied natural gas (LNG) from Iran in addition to supplies from Qatar that would by then rise to an equal amount.
By end-2008, Petronet LNG Ltd, which has set up India's first LNG terminal at Dahej in Gujarat, hopes to double its capacity to 10 million tonnes and commission a 2.5-million tonne terminal at Kochi in Kerala.
"Together with the recent agreement on Iran LNG supplies, India has secured 15 million tonnes of gas supply, which is around 60 million metric standard cubic metres a day (MMSCMD), almost equal to the country's current production," said Suresh Mathur, chairman and managing director of Petronet LNG.
India's current indigenous production is around 65 MMSCMD, against a demand of over 110 MMSCMD.
Petronet is currently expanding the capacity of the Dahej terminal with the construction of two more tanks that will double the capacity even as pre-construction work on the Kochi terminal is proceeding according to schedule.
"We hope to complete the financial closure of the Kochi terminal by June and start construction," said Mathur on the sidelines of a news conference to announce the schedule of the biennial Petrotech 2005 conference.
During his visit to Kochi last week, Qatar's Second Deputy Prime Minister and Energy and Industry Minister Abdullah bin Hamad Al Attiyah unveiled the model of the proposed terminal, being built at a cost of 
20 billion ($444 million).
Set up by a consortium of state-owned energy majors, Petronet LNG currently receives supplies from Qatar's Ras Laffan Liquefied Natural Gas Company (RasGas), which is expected to reach five million tonnes by April.
"We are setting up an initial capacity of 2.5 million tonnes at Kochi but have taken a decision to provide tankage for five million tonnes for later expansion," said Mathur.
All pre-project work has been done, including getting environment clearance, while the Kochi Port Trust has allocated land.
Petronet has received very good response to international tenders for three container ships and EPC (engineering, procurement and construction) for the Kochi project and for low cost expansion of Dahej project, which will involve construction of two tanks at a cost of 10 billion ($222 million).
"So far, 33 shipping companies have collected bid papers while 20 companies have shown interest in the EPC contracts," said Mathur.
The last date for the pre-qualification round of bids is Jan 17.
Comparing the deals struck for Iran and Qatar gas supplies, Mathur said: "India has struck very good pricing. Both the prices are very competitive."
With the Qatar contract having a provision of revision after five years of fixed price contract, Mathur said: "We have a provision in our contract with RasGas that if any country provides 2.5 million tonnes of gas at a lower price than what they have given us, they will match it.
"The Iran pricing sets a benchmark."
In keeping with the plans of expanding the capacity of its terminal, Petronet is looking for other sources for LNG supplies to match demand. While the capacity of the Dahej terminal is being expanded to 10 million tonnes, it would be able to handle an optimum quantity of 13 million tonnes.
Petronet is currently on the lookout for larger capacity vessels, particularly for the Kochi terminal that is at a longer distance from Qatar compared to Dahej.
A larger ship for transhipment of LNG from Qatar to Kochi would do away with the need for two ships. "We are looking for a larger vessel of around 165,000- 200,000 cubic metres capacity for economy of scale," Mathur said.
Source: IANS
20 billion ($444 million).
Set up by a consortium of state-owned energy majors, Petronet LNG currently receives supplies from Qatar's Ras Laffan Liquefied Natural Gas Company (RasGas), which is expected to reach five million tonnes by April.
"We are setting up an initial capacity of 2.5 million tonnes at Kochi but have taken a decision to provide tankage for five million tonnes for later expansion," said Mathur.
All pre-project work has been done, including getting environment clearance, while the Kochi Port Trust has allocated land.
Petronet has received very good response to international tenders for three container ships and EPC (engineering, procurement and construction) for the Kochi project and for low cost expansion of Dahej project, which will involve construction of two tanks at a cost of 10 billion ($222 million).
"So far, 33 shipping companies have collected bid papers while 20 companies have shown interest in the EPC contracts," said Mathur.
The last date for the pre-qualification round of bids is Jan 17.
Comparing the deals struck for Iran and Qatar gas supplies, Mathur said: "India has struck very good pricing. Both the prices are very competitive."
With the Qatar contract having a provision of revision after five years of fixed price contract, Mathur said: "We have a provision in our contract with RasGas that if any country provides 2.5 million tonnes of gas at a lower price than what they have given us, they will match it.
"The Iran pricing sets a benchmark."
In keeping with the plans of expanding the capacity of its terminal, Petronet is looking for other sources for LNG supplies to match demand. While the capacity of the Dahej terminal is being expanded to 10 million tonnes, it would be able to handle an optimum quantity of 13 million tonnes.
Petronet is currently on the lookout for larger capacity vessels, particularly for the Kochi terminal that is at a longer distance from Qatar compared to Dahej.
A larger ship for transhipment of LNG from Qatar to Kochi would do away with the need for two ships. "We are looking for a larger vessel of around 165,000- 200,000 cubic metres capacity for economy of scale," Mathur said.
Source: IANS